Lucas Company reported the following income statement and comparative balance sheets, along with transaction data for 2018: (Click the icon to view the income statement) (Click the icon to view the balance shoot.) (Click the icon to view the transaction data.) Requirement Prepare Lucas Company's statement of cash flows (using the indirect method) for the year ended December 31, 2018. Take the following three steps outlined here. Step 1: From the comparative balance sheets, determine the increase in cash and cash equivalents during the year, The increase in cash and cash equivalents during the year is $ . Step 2: Prepare a T-account to show the transaction activity in each long-term balance-sheet account. For each plant asset, use a single account net of accumulated depreciation (for example: Equipment, Net). Begin by posting the beginning balances to the T-accounts. Then, post the ending balances. Finally, record the transaction activity in each account, using the transaction letter identified in the listing provided below. (Be sure to select "Bal" to open and close the balances for each t-account. For accounts with a $0 beginning balance, make sure to select "Bal" and enter "0" on the normal balance side of the l-account.) (Click the icon to view the T-account transaction data.) Long-Term Investments Bonds Payable Equipment, Net Common Stock Choose from any list or enter any number in the input fields and then continue to the next question. 0 Balance Sheet 0 Income Statement Lucas Company Income Statement Year Ended December 31, 2018 Assets 2018 2017 Sales revenue Current: $ 652,000 534.000 Cost of goods sold Cash and cash $ Gross profit 118,000 equivalents $ 39,000 $ 5,000 20,000 29,000 8,000 20,000 Accounts receivable Lucas Company Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Liabilities Current: Accounts payable 61,100 S 9,000 Accrued liabilities 21,000 25,000 Income tax payable 41,000 38,000 Total current liabilities 7,000 10,000 Long-term note payable 130,100 82,000 Bonds payable 49,000 42,000 Stockholders' Equity 13,000 11,000 Common stock 35,000 10,000 Retained earnings Less: Treasury stock $ Inventories 64,000 Operating expenses Salary expenses Depreciation expense-equipment Amortization expense-patent 57,000 12,000 55,000 43,000 10,000 6,000 3,000 55,000 41,000 Prepaid expenses Total current assets Equipment, net Long-term investments Rent expense Total operating expenses 62,000 Income from operations 56,000 Patent, net 55,000 34,100 (22,000) 18,000 16,000 (13,000) Other items: Loss on sale of equipment Income before income tax (3,000) Total liabilities and $ 227,100 $ S 145,000 stockholders' equity 227,100 $ 145,000 53,000 15.900 Total assets Income tax expense Print Done Print Done Equipment, Net Common Stock Patent, Net Retained Earnings Long-Term Note Payable Treasury Stock Choose from any list or enter any number in the input fields and then continue to the next question. Step 3: Complete the statement of cash flows. From the income statement, take net income, depreciation, amortization, and the loss on sale of equipment to the statement of cash flows. Account for the year-to-year change in each balance sheet account. Using the information given and the t-accounts completed in Step 2, complete the statement of cash flows one section at a time. Start by completing the cash flows from operating activities. Then complete each remaining section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Lucas Company Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Lucas Company Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by (used for) operating activities Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Noncash investing and financing activities: Total noncash investing and financing activities Amortization Decrease in accounts receivable Decrease in accrued liabilities Decrease in prepaid expenses Depreciation Increase in accounts payable Increase in inventories Issuance of common stock Issuance of common stock to retire bonds payable Issuance of long-term note payable Issuance of long-term note payable to purchase patent Loss on sale of equipment Net income Payment of cash dividends Purchase of equipment Purchase of long-term investment Purchase of treasury stock Sale of equipment Total cash payments Total cash receipts d then continue to the next quest Lucas Company reported the following income statement and comparative balance sheets, along with transaction data for 2018: (Click the icon to view the income statement) (Click the icon to view the balance shoot.) (Click the icon to view the transaction data.) Requirement Prepare Lucas Company's statement of cash flows (using the indirect method) for the year ended December 31, 2018. Take the following three steps outlined here. Step 1: From the comparative balance sheets, determine the increase in cash and cash equivalents during the year, The increase in cash and cash equivalents during the year is $ . Step 2: Prepare a T-account to show the transaction activity in each long-term balance-sheet account. For each plant asset, use a single account net of accumulated depreciation (for example: Equipment, Net). Begin by posting the beginning balances to the T-accounts. Then, post the ending balances. Finally, record the transaction activity in each account, using the transaction letter identified in the listing provided below. (Be sure to select "Bal" to open and close the balances for each t-account. For accounts with a $0 beginning balance, make sure to select "Bal" and enter "0" on the normal balance side of the l-account.) (Click the icon to view the T-account transaction data.) Long-Term Investments Bonds Payable Equipment, Net Common Stock Choose from any list or enter any number in the input fields and then continue to the next question. 0 Balance Sheet 0 Income Statement Lucas Company Income Statement Year Ended December 31, 2018 Assets 2018 2017 Sales revenue Current: $ 652,000 534.000 Cost of goods sold Cash and cash $ Gross profit 118,000 equivalents $ 39,000 $ 5,000 20,000 29,000 8,000 20,000 Accounts receivable Lucas Company Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Liabilities Current: Accounts payable 61,100 S 9,000 Accrued liabilities 21,000 25,000 Income tax payable 41,000 38,000 Total current liabilities 7,000 10,000 Long-term note payable 130,100 82,000 Bonds payable 49,000 42,000 Stockholders' Equity 13,000 11,000 Common stock 35,000 10,000 Retained earnings Less: Treasury stock $ Inventories 64,000 Operating expenses Salary expenses Depreciation expense-equipment Amortization expense-patent 57,000 12,000 55,000 43,000 10,000 6,000 3,000 55,000 41,000 Prepaid expenses Total current assets Equipment, net Long-term investments Rent expense Total operating expenses 62,000 Income from operations 56,000 Patent, net 55,000 34,100 (22,000) 18,000 16,000 (13,000) Other items: Loss on sale of equipment Income before income tax (3,000) Total liabilities and $ 227,100 $ S 145,000 stockholders' equity 227,100 $ 145,000 53,000 15.900 Total assets Income tax expense Print Done Print Done Equipment, Net Common Stock Patent, Net Retained Earnings Long-Term Note Payable Treasury Stock Choose from any list or enter any number in the input fields and then continue to the next question. Step 3: Complete the statement of cash flows. From the income statement, take net income, depreciation, amortization, and the loss on sale of equipment to the statement of cash flows. Account for the year-to-year change in each balance sheet account. Using the information given and the t-accounts completed in Step 2, complete the statement of cash flows one section at a time. Start by completing the cash flows from operating activities. Then complete each remaining section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Lucas Company Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Lucas Company Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by (used for) operating activities Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Noncash investing and financing activities: Total noncash investing and financing activities Amortization Decrease in accounts receivable Decrease in accrued liabilities Decrease in prepaid expenses Depreciation Increase in accounts payable Increase in inventories Issuance of common stock Issuance of common stock to retire bonds payable Issuance of long-term note payable Issuance of long-term note payable to purchase patent Loss on sale of equipment Net income Payment of cash dividends Purchase of equipment Purchase of long-term investment Purchase of treasury stock Sale of equipment Total cash payments Total cash receipts d then continue to the next quest